President Federation of Pakistan Chambers of Commerce & Industry (FPCCI) Mian Nasser Hyatt Maggo has welcomed the visit of Chairman, Oil & Gas Regulatory Authority of Pakistan (OGRA) Masroor Khan to FPCCI Headquarters in Karachi to have a consultative session on the issue of ever-increasing gas shortages for industry and end-users.
He expressed his astonishment at the purchase of liquefied natural gas (LNG) at the rate of $30.6 per MMBTU, maintaining that this rate will destroy the fuel supply safety and foreign exchange reserves of Pakistan.
In a statement, Maggo said that gas supply shortages and disruptions have become an issue of survivability and sustainability for the industry of Pakistan. He added that in order to ensure the continuation of production and employment opportunities in the country, the government must devise a reliable and efficient mechanism to provide gas to export and non-export industries 24/7. The FPCCI chief also reiterated his proposal to issue private LNG import licenses to bridge the incrementally yawning demand-supply gap.
Vice President FPCCI Hanif Lakhany said that he is concerned about the lower imports of LNG this year at an inflated rate which is bound to diminish whatever industrial sector growth is left. Lakhany explained the plight of the textile industry and the real-world impediments that the export-oriented sector is facing due to insufficient and expensive gas supplies. He added that the government is risking the sustenance of millions of workers employed in the sector and the timely completion of export orders.
Chairman OGRA Masroor Khan said that the government machinery is fully aware of the issues being faced by the industrialists and the domestic consumer. He assured the issues will be addressed by setting up two new LNG terminals and an increased number of LNG cargoes in the years to come. He added that he is addressing all LNG associations and alliances of the country through the platform of FPCCI and their concerns are being heard.
Member Gas OGRA Muhammad Arif discussed the grave issues of safety and irregularities at the end of smaller retailers in the LNG & liquefied petroleum gas (LPG) distribution and sales network. He admitted that it will take some time to implement the standards at small shops selling gas for domestic and small-scale commercial consumption. He added that OGRA is working towards a system where every gas cylinder in the country will have a national serial number for safety, standardization, certification, recertification and tracking.
Convener of FPCCI’s central standing committee on LNG Muhammad Ali Haider said that domestic consumers who buy only 1–2 kilograms of LPG cannot afford it at the rate of Rs. 202.57/kg. he added that only 28 percent of households in Pakistan get piped natural gas and that is also not available during the testing winter months.
The meeting was attended by the senior representatives of the industry including, Parco Refinery, Byco Refinery, PSO, Brushane Gas, Hascol, SSGC, plant operators of Port Qasim and several other private-sector industry players.
